Technicals for week ending – 15th December 2017.

Note : This is not a recommendation and I am not a registered analyst, these are just data points and an assessment of the positives and negatives from a longer term point of view.

Nifty Weekly

Chart 1 No change in short term risks – a close below the 10080-10120 band and inability to move above would indicate weakness. Basic super-trend and 40-week MA are in buy mode and above the 9700 zones. I can’t predict worth a damn; my exit point will be a weekly close below the 40-week MA.

Chart 2 Nifty total returns/10 year Bond index ratio is above its 40-week MA & momentum also favours Nifty index, indicating longer term outperformance for Nifty vs bonds.

Chart 3 Longer term intermarket strength as per the RS matrix is in Realty & Energy.

Chart 4 Pharma index is below its 40-week MA.

Chart 5 Avg. & Median distance of all sectors from their 52-week closing high is at -4% & -2.1%.

Chart 6 FII flows in Index futures segment is flat